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Dow Rallies as Investors Cheer Possible Return of Yellen, Vaccine News

Published 11/23/2020, 03:24 PM
Updated 11/23/2020, 04:04 PM
© Reuters.

By Yasin Ebrahim

Investing.com - The Dow jumped Monday, led by energy on positive vaccine news, while a report suggesting President-elect Joe Biden plans to select former Federal Reserve Chair Janet Yellen as Treasury Secretary stoked hopes for further stimulus.    

The Dow Jones Industrial Average rose 1.13%, or 327 points. The S&P 500 was up 0.61% while the Nasdaq Composite added 0.22%.

Biden will nominate Yellen as Treasury Secretary, The Wall Street Journal reported. During her tenure as Fed Chair, Yellen was viewed as pro-stimulus, and if nominated is widely expected to support fiscal-boosting measures to shore up the economy. 

The news gave stocks a second wind, adding steel to the early-day vaccine-fueled rally.  

AstraZeneca (NASDAQ:AZN) said its clinical trials showed its Covid-19 vaccine was 70% effective in protecting against the virus. That was below the efficacy rate of rival vaccines from Pfizer (NYSE:PFE), and Moderna (NASDAQ:MRNA). The trial involved two dosing regimens, one of which showed a 90% efficacy rate, and the other with 62%.

In another boost in the fight against the virus, Regeneron's coronavirus antibody cocktail, used by President Trump when he was hospitalized with Covid-19 last month, was granted emergency use authorization by the Food and Drug Administration. Regeneron Pharmaceuticals (NASDAQ:REGN) shares were up about 1%.

The backdrop of positive coronavirus treatment-related news prompted investors to up their bets on airlines, banks, and cruise operators – sectors hit hard by the pandemic amid global restrictions to curb the virus.

United Airlines (NASDAQ:UAL), Delta Air Lines (NYSE:DAL), and American Airlines Group (NASDAQ:AAL) were sharply higher.

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Energy, meanwhile, surged nearly 5% on hopes a quicker end to the pandemic could shore up demand. Occidental Petroleum (NYSE:OXY) led the gains in the sector, up 17%.

Tech, meanwhile, turned positive after falling into the red earlier in the day, as gains in chip stocks, led by Micron Technology (NASDAQ:MU), helped offset weaker performance in the Fab 5.

Apple (NASDAQ:AAPL), Alphabet (NASDAQ:GOOGL), Amazon.com (NASDAQ:AMZN) Facebook (NASDAQ:FB), and Microsoft  (NASDAQ:MSFT) ended lower.

In other news, Snap (NYSE:SNAP) gained 2% after launching a feature on its platform to rival TikTok and Instagram Reels.

On the economic front, the composite Purchasing Managers' Index, which tracks activity in both manufacturing and services together, rose at its fastest pace since March 2015.

Latest comments

But there are miles long lines in major cities to collect their food packets otherwise they have nothing for the Thanksgiving Meal. The millionaires and billionaires harvested the loot others become beggars.
But there are miles long lines in major cities to collect their food packets otherwise they have nothing for the Thanksgiving Meal. The millionaires and billionaires harvested the loot others become beggars.
Vaccines will give cancer and ne, unknown desease to the poor manipulated brainwashed souls. Experts know that the virus will stay alive and will mute. the best solution ? auto immunization.
Good, now we get to see Obama and Biden without an economy that’s so beat down a blind deaf and mute person sleeping through the recovery could do well.
Who handed them an insolvent world financial system?
very true
Hyperinflation coming
Yeah mnuchin was a real fiscal hawk (sike)
It is also disappointing to see market commentaries stubbornly pushing “Dow” word to forefront, as a substitute to market, while every serious investor knows that US market index is S&P500, not dow. Dow is the least representative index among major ones.
I still think these vaccine pumps are creating a huge bull trap that will correct by years end as institutions dump shares to avoid any corporate tax executive orders that they fear Biden will pass. Split congress cannot stop such executive orders. They could stay in place for 6-12 months before being rectified. Market is going up too far too fast. Seems like extreme market manipulation. Nothing new here I suppose.
Thanks God, corporate and other taxes still cannot be implemented by executive orders in this country.
Pump and dump. The pump is nearing completion, the dump is going to be epic. And Biden is walking blindly into it and he doesn't even know it. Trump is only to happy to get out of it now before the ********hits the fan, he knows what's coming. Sleepy Joe doesn't have a clue, and when he wakes up he'll fall off his chair in the bunker, and Harris will try to take the reins but she won't have a clue either. 2021 is going to be a great show, get the popcorn ready folks.
Of course, Yellen would be much better in Treasury than some left-wing dreamer without brains. However, linking rumors about her nomination with daily market move looks like stretching, just to say the least.
Yellen is trash. Didn't raise rates under Obama to prop the bubble
 Jerome raised rates under Trump. Yellen didn't raise rates once.
Treasury department still has to operate within the budget set by the Senate, which is still under Republican control.
That would require two Democrats to win in GA. Though possible, and even hopeful, it's far more likely to split one each. And if the Democrats are able to win both, that should spark a decline in the markets due to increased likelihood of increased taxation and regulation.
drivel.
promises that you just can't keep. no Warren as treasury secretary even after the progressives helped elect old flip flop joe.
Rich are getting richer. Vaccines will give cancer to the poor manipulated brainwashed souls. Such a sad world.
along with cause overweight, and possibility of diabetes and other health issues. that's why I'm trying my hardest to eat and drink healthy as possible and take natural herbs
Awesome...Let's make few more Monday-Vaccine pumps in a row and we should be at DOW 33k. Who needs the vaccine anyway when the news of it do a better job for market.
Looks like all vaccines companies going to be fail as soon as
so dow going upside?
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